Newmalayalam Steel Ltd
Newmalayalam Steel Limited, a prominent player in the Indian steel manufacturing sector, is set to launch its Initial Public Offering (IPO) on December 19, 2024. This article provides a comprehensive overview of the company’s IPO details, financials, strengths, risks, and other pertinent information for potential investors.
Company Overview
Established in 2017 and headquartered in Thrissur, Kerala, Newmalayalam Steel Limited specializes in the production of steel products, including TMT bars and steel bars. The company has demonstrated consistent growth in the Indian steel industry, focusing on quality manufacturing and expanding its market presence.
IPO Timeline
- Opening Date: December 19, 2024
- Closing Date: December 23, 2024
- Listing Date: December 27, 2024
Price Band and Lot Size
- Price Band: ₹85 to ₹90 per equity share
- Lot Size: To be announced
Key Dates
- Basis of Allotment Finalization: To be announced
- Initiation of Refunds: To be announced
- Credit of Shares to Demat Accounts: To be announced
- Commencement of Trading: To be announced
Financials
As of the financial year ending March 31, 2023, Newmalayalam Steel Limited reported:
- Operating Revenue: ₹100 crore to ₹500 crore
- EBITDA: Decreased by 3.45% compared to the previous year
- Net Profit: Decreased by 10.78% compared to the previous year
- Net Worth: Increased by 19.89% compared to the previous year
These figures indicate a robust financial position with significant growth in net worth, despite slight declines in EBITDA and net profit.
Strengths
- Established Market Presence: Operating since 2017, the company has built a solid reputation in the steel manufacturing industry.
- Diverse Product Portfolio: Offers a range of steel products catering to various sectors.
- Strategic Location: Based in Kerala, facilitating access to key markets in Southern India.
Risks
- Market Competition: Faces competition from established players in the steel industry.
- Profitability Fluctuations: Recent financials show a decline in EBITDA and net profit, which may concern potential investors.
IPO Anchor Investors Details
Information regarding anchor investors has not been disclosed as of now.
IPO Promoter Holding
The promoter holding details are as follows:
| Promoter Name | Number of Shares | Percentage Holding |
|---|---|---|
| Vazhappily Davis Varghese | 62,91,300 | 49.74% |
| Divyakumar Jain | 36,49,400 | 28.85% |
| Ankur Jain | 21,29,500 | 16.84% |
| Mahendra Kumar Jain | 5,32,400 | 4.21% |
| Molly Varghese | 10,000 | 0.08% |
| Cyriac Varghese | 10,000 | 0.08% |
This table reflects the shareholding pattern among the promoters prior to the IPO.
IPO Grey Market Premium (GMP)
As of now, there is no available information regarding the Grey Market Premium for Newmalayalam Steel Limited’s IPO.
Final Thoughts
Newmalayalam Steel Limited’s upcoming IPO presents an opportunity for investors interested in the Indian steel sector. While the company showcases strengths such as an established market presence and a diverse product portfolio, potential investors should carefully consider the recent financial performance and inherent industry risks. Conducting thorough due diligence and consulting with financial advisors is recommended before making investment decisions.